A belief in the power of markets
- Each day, the global financial markets process millions of trades between buyers and sellers.
- These trades embed vast amounts of news, expectations, and information into prices.
- Dimensional regards a securitys price as the best estimate of actual value- and bases its investment approach on market prices.
A different investment approach
- Index fund managers aim to match index returns, accepting portfolio management and trading constraints that can increase costs.
- Traditional managers and Quants may rely on predictions or backtested simulations to ring misoriced securities or time markets.
- Dimensional believes investors can have a successful investment experience without having to outguess the market. The firm trusts market prices and applies a scienaric, transparent, and process-ariven investment approacn to pursue nigner expected returns
